US stocks climb on Yahoo earnings and factory output report

US stocks rose Wednesday, extending gains into a third session, as data had industrial production climbing more than projected and as Yahoo’s earnings bolstered the technology sector.

“It’s a big day today, we’ve got 17 out of the S&P 500 reporting, and so far it’s been more good than bad. There is more positive forward guidance than negative, so things will pick up in the second half of the year,” said Chris Gaffney, EverBank senior market strategist.

“And, we had industrial production come out on a positive note this morning, supporting the notion that the economy is heating up with the weather,” Gaffney said.

Yahoo surged after reporting robust sales at Alibaba Group Holding, the Chinese e-commerce company in which it holds a 24 percent stake.

“It all circles back to China,” said Jack Ablin, chief investment officer at BMO Private Bank.

“Earnings aren’t as terrible as people thought they were going to be,” Ablin added.

Bank of America fell after posting a first-quarter loss as the lender settled claims tied to mortgage bonds. PNC Financial Services Group rose after the regional bank reported first-quarter profit that beat expectations.

A report from the Commerce Department had the pace of U.S. home construction bouncing back less than expected last month, with the data coming after a report Tuesday that showed homebuilder confidence rising less than projected in April.

Another report had U.S. manufacturing output rising for a second straight month in March, with factory production up 0.5 percent last month. Overall industrial production climbed 0.7 percent, beating expectations.

Name Price Change %Change
DJIA Dow Jones Industrial Average 16343.90 81.34 0.50%
S&P 500 S&P 500 Index 1851.18 8.20 0.44%
NASDAQ Nasdaq Composite Index 4049.68 15.52 0.38%

After a 124-point jump, the Dow Jones Industrial Average gained 67.85 points, or 0.4 percent, to 16,330.41, with Procter & Gamble and Visa pacing gains that had 26 of the index’s 30 components rising.

The S&P 500 jumped 6.25 points, or 0.3 percent, to 1,849.23, with consumer discretionary leading gains that extended to all 10 of its major sectors.

The Nasdaq climbed 9.87 points, or 0.3 percent, to 4,044.10.

For every share on the decline, more than two rose on on the New York Stock Exchange, where 199 million shares traded by 11:10 a.m. Eastern. Composite volume hit 962 million.

The dollar fell against the currencies of major US trading partners and the yield on the 10-year Treasury note used in figuring mortgage rates and other consumers loans added 2 points to 2.653 percent.

Crude-oil futures for May delivery rose 56 cents, or 0.5 percent, to $104.31 a barrel; gold futures for June delivery fluctuated, lately up 20 cents at $1,300.50 an ounce. The precious metal fell below its 200-day moving average on Tuesday.

On Tuesday, stocks turned higher, with the Nasdaq making its largest rebound in five years on upbeat earnings from Dow components Coca-Cola and Johnson & Johnson.

Federal Reserve Chair Janet Yellen addresses the Economic Club of New York Wednesday afternoon, ahead of the Fed’s Beige Book at 2 p.m. Eastern.

Google and IBM are among the technology companies that report later Wednesday.

—By CNBC’s Kate Gibson

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